Proposal of India-Nepal-China economic corridorChina proposed a India-Nepal-China economic corridor with multi-dimensional connectivity through the Himalayas as it seeks to expand its influence over the new Nepalese government headed by Prime Minister K. P. Sharma Oli, widely regarded as pro-Beijing. China’s proposal came after visiting Nepalese foreign minister Pradeep Kumar Gyawali held talks with his Chinese counterpart Wang Yi.

Past cooperation between Nepal and ChinaWang said China and Nepal have already signed an MOU on the China’s multi-billion-dollar Belt and Road Initiative (BRI) in which connectivity cooperation is a part. It included a long-term vision such as connectivity network and covering the links between the two countries though ports, railways, highways, aviation, power and communications.

BackgroundThe pro-active initiatives by China came as Oli, who is widely regarded as pro-China, during his last tenure as Prime Minister signed a transit treaty with Beijing in 2016 ending the decades-long dependence on India for commodity and energy supplies for his land locked country. He also sought railway connectivity between the two countries through Tibet which China is currently building.

China’s interestsWang said Gyawali had given firm commitment for the ‘one China’ policy accepting Taiwan and Tibet as part of China. In an apparent reference to curtailment of Tibetan refugees crossing to Dharamsala through Nepal to meet the Dalai Lama, Wang said Nepal has agreed to not allow its territory to be used for anti-China activities.